Sea Logistics : CMA CGM ~ YES TO WESPORTS, NO TO PTP BUT CONTINUOUS GROWTH FOR BOTH PORTS

The world’s third largest container shipping line, CMA CGM SA has confirmed that they have no intention to move its regional transshipment hub which is currently located at Wesports in Port Klang to Port of Tanjung Pelepas (PTP) in Johor. CMA CGM which is currently Wesports Holdings Berhad’s largest customer, contributing up to 10% of the ports revenue, is expecting to handle over 2.5 million 20-foot equivalent units (TEUs) this year. Westports is also the French shipping group’s largest transshipment hub. The buzz about possible move by CMA CGM from Westports to PTP rose when it entered into the P3 shipping alliance another 2 large shipping corporations in the world, Maersk Line and Mediterranean Shipping Co. Maersk Line has stake of 30% in PTP and strengthen rumour about the possible move of CMA CGM to PTP. Although the air on the relocation had been cleared but due to the P3 alliance, CMA CGM will transfer 5 out of their 80 services from Westports to PTP. These are small volume services between Asia and North Europe. On the other hand, CMA CGM has other growth plans at Wesports to supplant the 5 services while PTP will remain as their secondary hub.

In this case, Westports as well as PTP should be optimistic on the shipping line’s decision. The ports should continue to serve their customers to retain them at Malaysia. It is definitely a great success to see big brands of the logistics world setting their establishments in this country and are looking at continuous growth here. The concentration of both these ports should remain focused in functioning efficiently to accommodate their existing customers and develop further to attract more investments into the country.

Thank you for your time.

Best regards,

Mahinder Singh Malhi